Income Tax (Residence) (Guernsey) (Amendment) Law, 2005

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PROJET DE LOI

ENTITLED

The Income Tax (Residence) (Guernsey) (Amendment) Law, 2005

THE STATES, in pursuance of their Resolution of the 27^th October, 2004[a], have approved the following provisions which, subject to the Sanction of Her Most Excellent Majesty in Council, shall have force of law in the islands of Guernsey and Herm.

Amendment of Law of 1975.

1. The Income Tax (Guernsey) Law, 1975, as amended[b], hereinafter called "the Law of 1975", is further amended as follows.

2. For section 3 of the Law of 1975 substitute the following section -

"Definition of "resident", "solely resident" and "principally resident" in the case of an individual.

3. (1) An individual shall be treated as being "resident" in Guernsey in any particular year of charge if -

(a) he spends 91 days or more in Guernsey in that year of charge, or

(b) he spends 35 days or more in Guernsey in that year of charge and, during the four preceding years of charge, he has spent 365 days or more in Guernsey.

(2) An individual shall be treated as being "solely resident" in Guernsey in any particular year of charge if -

(a) he is resident in Guernsey, within the meaning of subsection (1), in that year of charge, and

(b) he is not resident in any other place in that year of charge; and for the purposes of this paragraph an individual shall be treated as being resident in any other place in any particular year of charge only if he spends 91 days or more in that place in that year of charge.

(3) An individual shall be treated as being "principally resident" in Guernsey in any particular year of charge if -

(a) he spends 182 days or more in Guernsey in that year of charge, or

(b) he spends 91 days or more in Guernsey in that year of charge and, during the four preceding years of charge, he has spent 730 days or more in Guernsey, or

(c) he takes up permanent residence in Guernsey in that year of charge; and for the purposes of this paragraph an individual shall be treated as taking up permanent residence in Guernsey in any particular year of charge if -

(i) he is resident in Guernsey, within the meaning of subsection (1), in that year of charge, and

(ii) he is solely or principally resident in Guernsey in the following year of charge.

(4) For the purposes of this Law an individual shall be regarded as being in Guernsey or in any other place on any particular day, or as spending any particular day in Guernsey or in any other place, if he is in Guernsey or, as the case may be, in that other place at midnight on that day.".

3. In section 5(1)(b) after "year of charge" insert ", and for the purposes of this paragraph any amount not so arising or accruing and brought into or received by that individual in Guernsey in that year of charge shall be presumed to be income unless he can establish otherwise to the satisfaction of the Administrator".

4. In section 209(1) of the Law of 1975 insert the following definitions at the appropriate places -

""day", for the purposes of determining whether an individual is in Guernsey or in any other place on any particular day, or spends any particular day in Guernsey or in any other place, shall be construed in accordance with section 3(4);

"non-resident", in the case of any person, means that he is not resident or solely or principally resident;

"principally resident", in the case of an individual, shall be construed in accordance with section 3;

"resident", in the case of an individual or a company, shall be construed in accordance with section 3 or (as the case may be) section 4;

"solely resident", in the case of an individual, shall be construed in accordance with section 3;".

Repeal.

5. In section 1 of the Income Tax (Amendment) (Guernsey) Law, 1981[c], paragraphs (a) and (b) are repealed.

Citation.

6. This Law may be cited as the Income Tax (Residence) (Guernsey) (Amendment) Law, 2005.

Commencement.

7. This Law shall come into force on the 1^st January, 2006.

[a]	Article IX of Billet d'État No. XVIII of 2004.
[b]	Ordres en Conseil Vol. XXV, p. 124; Vol. XXVI, pp. 146, 200 and 292; Vol. XXVII, pp. 84, 118, 200, 333 and 565; Vol. XXVIII, pp. 184, 278, 353 and 409; Vol. XXIX, p. 214; Vol. XXXI, pp. 406 and 473; Vol. XXXII, p. 307; No. IV of 1991; No. VI of 1992; No's. IV and VIII of 1993; No. XXV of 1994; No's. III and VII of 1995; No. V of 1996; No's. IV and XXII of 1997; No's. II and VI of 1999; No. IV of 2000; No's. VI and XVII of 2001; No. VII of 2002; No's. IV, XVIII and XXVI of 2003; No's. XII and XVI of 2004; the Income Tax (Pension Amendments) (Guernsey) Law, 2004; and the Income Tax (Business Profits) (Guernsey) (Amendment) Law, 2004.
[c]	Ordres en Conseil Vol. XXVII, p. 333.